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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (8044)	3/9/1998 1:35:00 AM
From: Michael Collings	Read Replies (1) \| Respond to of 27307

William: What differentiates AOL from YHOO are those "recurring revenues". I think AOL has figured out that the ad business may not be all that lucrative with all the competition that's out there. But the recurring revenues are what keeps the company going despite the fickle ad seasons. They have repeatedly agreed that although ad and commerce revenue are growing, that they aren't growing as fast as what was anticipated. Companies like Automatic Data Processing practically give away their product so they can get the recurring revenue. When Yahoo figures that out, and come up with a model that generates recurring revenue, then maybe they will actually start making money. Since a listing on Yahoo is so important to the various internet sites, maybe Yahoo should start charging for the listings like the yellow pages do. Ahhh but then there's all that competition out there willing to do it for free so who would pay them? So that brings us back to the fact that Yahoo has so much competition that it just might not be possible for them to show a true profit and still keep providing all the free services that they need to do now to attract eyeballs. It looks like a vicious circle to me.